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The small claims court is not a separate court in itself, but a “fast-track” division of the county court system.

But for claims up to £5,000 (£1,000 for personal injury or housing disrepair cases), it offers distinct advantages over conventional court litigation. Bringing a claim in the small claims court is quicker, much cheaper and protects claimants from the potentially ruinous effects of losing their case and being required to pay the defendant's legal costs.

The small claims system is also designed to be much less formal and more user-friendly, so that litigants do not need to use a solicitor. You can appoint one to represent or advise you if you wish, but you cannot claim their fees from the opposing side if you win. Hearings are held in judge's private offices, rather than a traditional courtroom, and the language used is informal. But if your claim is not straightforward, it may also be worth getting some advice – whether it be from a solicitor or Citizens Advice Bureau – before launching a claim. If a dispute is based on newly-passed laws, there is a small chance it will be referred to full court, where you would be liable for some of the other side's costs if you lose.

Costs
The court fee for small claims courts ranges from £30 to £120 depending on the size of your claim. For claims of more than £1,500, a further fee of £100 is payable if your opponent files a defence. However, you may not need to pay fees at all if you receive income support, jobseeker's allowance or the maximum working families tax credit. If you had need to pay for “expert evidence” (for example, a garage mechanic to prove that your car is faulty) to support your claim, you can claim up to £200 (plus reasonable travelling expenses) of this back from the other side if you win.

Procedure
Before launching a claim, you will need to first write to the person or company you are claiming against to inform them that you will take your case to the small claims court if they do not settle within 14 days. If this does not do the trick, you will need to submit a claim form (available online at www.courtservice.gov.uk or from your local county court), in which you set out the details of your claim. A copy will be sent to the defendant by the court who has 14 days to reply and 28 days to file a defence. If they fail to meet this deadline, you can apply for a default judgment. If they do file a defence, the court will send you a copy and the court will send you a questionnaire to determine how long the case is likely to last, for example by asking how many witnesses you intend to call.

The court will then send you “directions”, outlining what you need to do and bring with you to the court at least 14 days before the hearing. Each side must also supply the other with copies of all the documents they intend to use and you must tell your opponent about any witnesses you intend to call.

On the day of the hearing, both sides will be able to put their case, ask questions and call their witnesses. Independent and “expert” witnesses are often crucial to the success of your claim, so it is important that they are made aware of the hearing date and are able to attend. The judge may make a decision on the day or write to you later with the decision.

After the event
Around 80% of small claims cases are found in favour of the claimant, but if you do lose, the most you are likely to have to pay is £200 (plus travelling expenses) towards your opponents' expert witness costs, if any. You also have 14 days to appeal if the court grants you permission. This will cost £100, but more seriously, if you lose an appeal you will have to pay all your opponent's costs, which may be quite considerable by this stage.

For more information, visit Takelegaladvice.com